Take-Two Interactive SoftwareFRA:TKE +1.45%74 Interest Coverage is 0.11 as of Mar. 2026, which is 100% below its 10-year median of 22.24. GuruFocus rates FRA:TKE with a GF Score™ of 74/100 and a GF Value™ of €185.55 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 316 Interactive Media companies, Take-Two Interactive Software ranks worse than 316455.38% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Take-Two Interactive Software's
Operating Income
for the
three
months ended in Mar. 2026 was €9 Mil. Take-Two Interactive Software's Interest Expense for the
three
months ended in Mar. 2026 was €-79 Mil.
Take-Two Interactive Software's interest coverage for the quarter that ended in Mar. 2026 was 0.11.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Take-Two Interactive Software's Interest Coverage or its related term are showing as below:
FRA:TKE's Interest Coverage is not ranked *
in the Interactive Media industry.
Industry Median: 38.305 * Ranked among companies with meaningful Interest Coverage only.
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Take-Two Interactive Software Interest Coverage Related Terms
Take-Two Interactive Software Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:TKE vs EA, RBLX, NTES: Interest Coverage Comparison
For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Take-Two Interactive Software Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Take-Two Interactive Software's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Take-Two Interactive Software (FRA:TKE) has a Interest Coverage of 0.11 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Take-Two Interactive Software and its competitors. This is 100% below median its historical median of 22.24. According to the industry distribution chart, Take-Two Interactive Software ranks #999999 out of 316 companies in the Interactive Media industry.
Is Take-Two Interactive Software's Interest Coverage too high?
Take-Two Interactive Software's current Interest Coverage of 0.11 is 100% below median its 10-year median of 22.24. The Interactive Media industry median Interest Coverage is 38.31. Take-Two Interactive Software's value of 0.11 is 99.7% below this industry median. Based on the distribution chart, Take-Two Interactive Software ranks #999999 out of 316 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Take-Two Interactive Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Take-Two Interactive Software's Interest Coverage compare to EA and RBLX?
According to the Interactive Media industry distribution chart, Take-Two Interactive Software ranks #999999 out of 316 companies for Interest Coverage. This places Take-Two Interactive Software in the lower half of its industry. The industry median Interest Coverage is 38.31. Take-Two Interactive Software's value of 0.11 is 99.7% below this benchmark. While the company's 10-year median is 22.24 vs. the industry median of 38.31, Take-Two Interactive Software has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.31, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Take-Two Interactive Software's current Interest Coverage of 0.11 is 99.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Take-Two Interactive Software and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Take-Two Interactive Software's current Interest Coverage is 0.11, which is 100% below median its own 10-year median of 22.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Take-Two Interactive Software stock overvalued right now?
Based on GuruFocus' analysis, Take-Two Interactive Software (FRA:TKE) is currently considered Modestly Overvalued. The stock's GF Value™ is €185.55, compared to a current price of €223.20 — trading 20.3% above its estimated fair value. The current Interest Coverage is 0.11, which is 100% below median its 10-year median of 22.24 and 99.7% below the Interactive Media industry median of 38.31. Take-Two Interactive Software's overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Take-Two Interactive Software (FRA:TKE), the current Interest Coverage is 0.11 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Take-Two Interactive Software (FRA:TKE) Overvalued in 2026?
Based on GuruFocus' analysis, Take-Two Interactive Software stock appears to be overvalued.
The current stock price of €223.20 is trading 20.3% above its estimated GF Value™ of €185.55.
GuruFocus considers Take-Two Interactive Software to be Modestly Overvalued.
Key valuation signals for FRA:TKE:
Interest Coverage: 0.11 (100% below median its 10-year median of 22.24)
GF Value™: €185.55 vs. price of €223.20 (20.3% above fair value)
Industry Position: 99.7% below the Interactive Media median (#999999 of 316)
No single metric tells the full story. See the FRA:TKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Take-Two Interactive Software Business Description
Take-Two is one of the largest global developers and publishers of video games, with labels including Rockstar, 2K, and Zynga. Grand Theft Auto is the firm's biggest franchise, accounting for about 30% of total sales for the past decade. NBA 2K is the industry's dominant basketball video game, with Take-Two releasing a new version annually. Other notable franchises include Red Dead Redemption, Borderlands, and Civilization. Typically, more than three-fourths of the firm's sales are from in-game spending, with the remainder coming from initial game sales. Since acquiring Zynga in 2022, mobile makes up about half of total sales.
74GF Score
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